Quote data from MyChoice.ca, October 2024
How Can You Get Cheap Car Insurance in Alberta?
You can get lower premiums and cheap car insurance in Alberta by finding the best policy deals and lowering your risk profile. Here are several ways to get cheap Alberta auto insurance:
How Does Car Insurance Work in Alberta?
Car insurance in Alberta works by providing an agreed-upon amount of money when you’re involved in an auto accident. Auto insurance in Canada is mandatory, which means you must have an insurance policy to avoid fines and suspensions.
On top of facing fines and suspensions, you could be flagged as a high-risk driver by insurers if you’re caught driving without insurance. High-risk drivers get higher auto insurance premiums, meaning it’ll be even harder for you to drive legally in Alberta.
Auto insurance coverage in Alberta is split into two types:
- Mandatory: You need mandatory coverage to drive legally.
- Optional: Optional coverage provides extra protection in specific situations.
How Your Car Insurance Quotes are Calculated in Alberta
Your Alberta car insurance rates are calculated based on how risky the insurer thinks you are. Generally, you’ll pay higher premiums if the insurer believes you’re more likely to get into an accident.
Here are the key criteria for determining your Alberta car insurance quotes:
Most Expensive Cities to Insure a Car in Alberta
The average annual auto insurance rate in Alberta is $1,193, with some areas of the province having higher premiums than others. Alberta’s top three most expensive cities for car insurance are Calgary at $1,489/year, Airdrie at $1,432/year and Edmonton at $1,391/year.
Check the table below for a detailed look at the most expensive cities for car insurance in Alberta:
Quote data from MyChoice.ca, October 2024
Least Expensive Cities to Insure a Car in Alberta
On the other side of the spectrum, there are a few cheap cities for car insurance rates in Alberta. Medicine Hat takes first place at $1,102/year, while Lethbridge is second at $1,181/year while Grande Prairie brings up the rear at $1,202.
Here’s a detailed look at the least expensive cities for car insurance in Alberta:
| City | Average car insurance rate |
|---|---|
| Medicine Hat | $1,102 |
| Lethbridge | $1,181 |
| Grande Prairie | $1,202 |
Quote data from MyChoice.ca, October 2024
Car Insurance Cost in Alberta by Age
Alberta car insurance premiums rise and fall depending on your age. Teens usually pay higher premiums, but these lower as they age. When you hit 65, premiums rise again because your accident risk increases.
Here’s a closer look at car insurance costs in Alberta, organized by age:
| Age group | Average cost | Annual savings with MyChoice |
|---|---|---|
| 18-20 | $4,323 | $859 |
| 21-24 | $2,470 | $491 |
| 25-34 | $1,646 | $327 |
| 35-44 | $1,211 | $240 |
| 45-54 | $933 | $197 |
| 55-64 | $844 | $167 |
| 65+ | $962 | $191 |
Rates as of February 2024, using the standard driver profile detailed in the methodology below.
Car Insurance for Specific Demographics in Alberta
For the most part, the most expensive car insurance rates anywhere occur in densely populated areas and this coincides with the Edmonton to Calgary corridor being one of the most urbanized areas in Canada, not just Alberta.
Here are additional tips for getting car insurance for specific demographics:
Car Insurance Cost in Alberta by Driving History
When calculating your Alberta car insurance premiums, insurers check your driving history to predict how you’ll drive in the future. Past violations could lead them to think you won’t be a safe driver.
Driving violations stay on your record for several years, so you might end up “paying” for those mistakes long after the fact. In Alberta, the premium differences between someone with a clean driving record and a bad driving record can reach up to $1,477 annually.
Here’s an example of how a bad driving record influences your Alberta auto insurance premiums:
| Driving violation | Average annual car insurance rate |
|---|---|
| Clean driving record | $1,193 |
| Insurance cancellation due to non-payment | $1,956 |
| Licence suspension for alcohol-related offences | $1,431 |
| One accident | $2,624 |
| Speeding ticket | $1,550 |
Rates as of February 2024, using the standard driver profile detailed in the methodology below.
Quote data from MyChoice.ca, October 2024
Other Factors That Affect Car Insurance Prices in Alberta
Many factors influence your Alberta car insurance rates. In addition to the ones we covered previously, here are other criteria that may increase or decrease your premiums:
Main Mode of Commuting in Alberta
The vast majority of commuters in Alberta travel by personal vehicle, making it the most popular commuting method in the province. At 87.3%, personal vehicle commuters are far more numerous compared to public transit users and other kinds of commuters in Alberta. Here’s a detailed look at how Albertans commute:
| Main mode of commuting | Counts | Rates |
|---|---|---|
| Total – 25% Sample Size | 1,578,980 | 100.0 |
| Car, truck or van | 1,378,685 | 87.3% |
| Car, truck or van – as a driver | 1,287,940 | 81.6% |
| Car, truck or van – as a passenger | 90,740 | 5.7% |
| Public transit | 88,255 | 5.6% |
| Walked | 62,810 | 4.0% |
| Bicycle | 11,370 | 0.7% |
| Other method | 37,865 | 2.4% |
Commuting Duration in Alberta
Nearly 70% of Alberta’s commuters spend less than half an hour getting to work. The remaining 30% spend over half an hour on their commute. While somewhat rare, there are over 90,000 commuters who take over an hour getting to work in Alberta. Here’s a closer look at the commuting duration in Alberta:
| Commuting duration | Counts | Rates |
|---|---|---|
| Total – 25% Sample Size | 1,678,980 | 100.0 |
| Less than 15 minutes | 487,710 | 30.9% |
| 15 to 29 minutes | 610,485 | 38.7% |
| 30 to 44 minutes | 302,735 | 19.2% |
| 45 to 59 minutes | 87,230 | 5.5% |
| 60 minutes and over | 90,815 | 5.8% |
Who Provides Car Insurance Quotes in Alberta?
Insurance agents, brokers, aggregators, and direct writers provide car insurance quotes in Alberta. What are the differences, and what does each offer? Here’s a closer look at the four insurance provider types:
Most Common Questions About Car Insurance in Alberta
Can I drive a car insured by someone else in Alberta?
Yes, you can drive a car insured by someone else in Alberta. You’ll be protected under their policy if the policyholder gives you permission to drive. However, this applies only if you drive their car occasionally. If you drive the person’s car frequently, they must inform the insurer.
Can I drive my parent’s car without insurance in Alberta?
You can’t drive your parent’s car without insurance in Alberta, but they can include you in their policy instead of you having to get one yourself. Additionally, if you drive with a learner’s licence, you still need a responsible adult accompanying you.
Can I get 6-month car insurance in Alberta?
You can’t get a dedicated six-month car insurance policy in Alberta. However, you can buy a regular policy and cancel it after six months.
Can I get car insurance for a month in Alberta?
You can’t get one-month car insurance policies in Alberta because the standard policy lasts 12 months. However, you can get a policy, pay premiums once, and cancel it after 30 days.
Can I have Alberta car insurance while living in BC?
You can’t have an Alberta car insurance policy while living in BC. Once you arrive in BC, you have 30 days to get a BC car insurance policy and 90 days to get a BC driver’s licence.
Can I insure a vehicle I don’t own in Alberta?
You can insure a vehicle you don’t own in Alberta, but you need to prove insurable interest first. You can do this by adding the car’s owner to your insurance policy.
Can I transfer my insurance to another car in Alberta?
You can transfer your insurance to another car in Alberta. Notify your insurance provider, and follow their instructions.
Can someone else insure my car in Alberta?
Someone else can insure your car in Alberta, but they need to prove insurable interest. A good way to do so is by adding your name to the policy.
Can you be refused auto insurance in Alberta?
You can’t be refused auto insurance in Alberta thanks to the All Comers Rule. The rule states that no insurer can deny mandatory insurance coverage to drivers in Alberta as long as they continue to make payments and don’t have debts with another insurer.
Can you bundle car insurance in Alberta with a girlfriend or partner?
You can share car insurance in Alberta with a girlfriend or boyfriend. This is usually done in more committed relationships where the partners live together and share a car.
Can you get temporary car insurance in Alberta?
You can’t get temporary car insurance in Alberta. However, the province offers a temporary driver’s permit for 14 days. Note that this temporary permit still requires auto insurance.
Can you insure a car in Alberta with a BC licence?
You can insure a car in Alberta with a BC licence, but you need to apply for an Alberta licence within 90 days.
Can you insure a car without a licence in Alberta?
You can insure a car without a licence in Alberta, but you must name a licensed driver in the policy.
Can you register a car without insurance in Alberta?
You can’t register a car without insurance in Alberta. A valid policy is one of the registration requirements.
Can you suspend auto insurance in Alberta?
You can’t suspend auto insurance in Alberta. If you want to stop driving for an extended period, you have to cancel your policy.
Do Alberta car insurance companies check your credit score?
Alberta car insurance companies can only check your credit score with your consent – if you say no, they can’t check it.
Do I have to add my child to my car insurance in Alberta?
You only need to add your child to your insurance policy if they drive your car. Otherwise, there’s no need to do so.
Do I need insurance to register a car in Alberta?
You need insurance to register a car in Alberta because it’s one of the requirements.
How do insurance companies write off vehicles in Alberta?
Insurance companies in Alberta write vehicles off when the estimated repair costs exceed the car’s pre-accident cash value.
How does not having a full licence in Alberta impact my insurance rate?
Not having a full licence impacts your Alberta car insurance rates because you’re seen as an inexperienced driver. You may get higher rates if you own insurance with a learner’s licence.
How does the Alberta driver’s licence system work?
Alberta’s driver’s licence system works like in many other provinces, where you go through certain stages to become a fully licensed driver. To graduate from each stage, you must earn enough driving experience and pass the tests.
There are three levels of licences for Albertan drivers:
1. Learner’s licence
2. Probationary licence
3. Full licence
How does tort auto insurance in Alberta work?
The “tort” or “at-fault” insurance system in Alberta works by requiring the at-fault driver’s insurer to pay for damages. Simply put, the bad driver covers the damage caused in an accident.
How much is car insurance for a new driver in Alberta?
The cost of car insurance for new drivers in Alberta varies depending on your personal demographics, vehicle choice, and other factors. With the average being $1,211 you can expect to pay a higher amount than that.
How much is it to insure a used car in Alberta?
Insurance for a used car in Alberta depends on its age, safety track record, and modifications. If it’s in relatively good condition and hasn’t been involved in any accidents, your used car insurance rates might be close to new car insurance rates.
How do you insure a classic car in Alberta?
You can insure a classic car in Alberta by applying for insurance, just like any other car. However, keep in mind that classic car insurance rates are typically higher than regular car insurance rates.
How do you register and insure a car in Alberta?
To register a car, go to a registry agent with the required documents, like proof of ownership, a valid insurance policy, and identification. Meanwhile, get insurance by applying with an insurance broker or agent.
I have a Class 7 (learner’s) licence. Can I insure my vehicle?
You can insure your vehicle with a Class 7 licence, just like any other licence.
Is car insurance cheaper in Alberta than in BC?
Car insurance is cheaper in Alberta than in BC. Alberta has an annual average auto insurance premium of $1,211, more than $400 cheaper than BC’s $1,685.
Is car insurance cheaper in Alberta than in Ontario?
Car insurance is cheaper in Alberta than in Ontario. There’s a nearly $450 difference between Alberta’s annual average rates of $1,211 and Ontario’s $1,673.
Is car insurance mandatory in Alberta?
Car insurance in Alberta is mandatory, like in the rest of the country.
Is hail damage covered by car insurance in Alberta?
Hail damage is covered by car insurance in Alberta if you have comprehensive insurance coverage.
Is ridesharing insurance available in Alberta?
Ridesharing insurance is available in Alberta. It is required when working as a driver.
Is there GST on auto insurance in Alberta?
Alberta charges a 4% goods and services tax (GST) on auto insurance premiums.
Is usage-based insurance available in Alberta?
Usage-based insurance is available in Alberta. Ask your insurer if you want to apply for a policy.
Is there parked car insurance in Alberta?
You can get parked car insurance in Alberta to protect cars you’re not driving for an extended period.
What are the penalties for driving without insurance in Alberta?
The penalties for driving without insurance in Alberta are:
– First offence: A fine of up to $10,000
– Second offence within five years: A fine of up to $20,000
Failure to pay either fine may result in up to six months of jail time.
What is the grid level for auto insurance in Alberta?
The grid level for auto insurance in Alberta is a system that determines the maximum rate insurers can charge for mandatory coverage. Every driver gets assigned a grid level based on how long they’ve been driving and how many at-fault accident claims they’ve made. The more at-fault claims the driver makes, the further they move up the grid – landing them higher rates.
What is the minimum coverage for auto insurance in Alberta?
Alberta’s minimum auto insurance coverage includes third-party liability, accident benefits, and DCPD. All other coverage is optional.
What’s the minimum legal driving age in Alberta?
The minimum legal driving age in Alberta is 14 years old. However, 14-year-old drivers with a learner’s licence must be accompanied by an adult until they get their probationary licence at 16.
Who can drive my car under my insurance in Alberta?
Anybody can drive your car under your insurance in Alberta as long as they have permission.
Who has the cheapest car insurance in Alberta?
The cheapest car insurance in Alberta will depend on your coverage needs, risk profile, and other factors. Compare quotes through MyChoice to find the cheapest car insurance provider for you.
Who regulates auto insurance rates in Alberta?
The Automobile Insurance Rate Board (AIRB) regulates car insurance rates in Alberta. It’s responsible for approving all rate changes for auto insurance providers in Alberta.
Why did my car insurance go up in Alberta?
Many things can cause your car insurance to go up in Alberta. Here are some common causes:
– Recent insurance claims
– Inflation
– Traffic violations
– Increase in vehicle theft
– Rise in auto repair costs
Why is car insurance so expensive in Alberta?
One of the reasons why car insurance is so expensive in Alberta is the city’s high theft rate. The more vehicles are stolen in an area, the more insurers have to pay out – increasing rates for everyone.